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Cabotage refers to the transportation of goods or passengers between two points within the same country by a foreign carrier, typically subject to regulations that restrict or limit such activities to protect domestic industries.
Cabotage is a maritime, aviation, or trucking regulation that controls domestic transportation by foreign operators. The law limits foreign carriers from operating domestic routes without a local permit, ensuring that only qualified domestic companies can provide specific services. This is especially important in industries like shipping and aviation, where domestic economies rely on local carriers for safety, security, and economic growth.
Cabotage works by imposing restrictions on foreign carriers from transporting goods or passengers between two points within a country without authorization. For your business, understanding cabotage laws ensures compliance with transportation regulations and avoids potential penalties.
By supporting local carriers, your business contributes to the economic growth and job creation within the domestic transport sector. Additionally, domestic transportation options under cabotage laws may offer more reliable and secure services compared to foreign alternatives.
Buske Logistics is a Top 40 3PL with over 35 warehouses across North America, specializing in warehousing, transportation, and value-added services. We provide tailored logistics solutions serving major Fortune 500 companies.
Cabotage regulations are critical in protecting the interests of domestic industries and maintaining national security. By limiting foreign competition on domestic routes, countries can ensure that their local carriers maintain a competitive edge, job opportunities, and safety standards. Additionally, cabotage laws help prevent foreign companies from undercutting local businesses, which could destabilize the market.
For businesses, adhering to cabotage laws ensures compliance with international and domestic trade regulations. It also allows local carriers to thrive by maintaining domestic transportation jobs, infrastructure investments, and regional economic development, which benefits the country as a whole.
